In a few weeks we will be launching a comprehensive online support center for you to use in planning your current and/or estate planned gift to the USO of North Carolina (USO-NC).
While our primary purpose is to provide the support you want delivered to our nation’s Soldiers, Sailors, Marines, Coast Guardsmen, Airmen, National Guardsmen, and Reservist, our leading priority is always to foster philanthropic gifts that are in the best interest of the donor.
Though our development staff is composed of trained professionals that adhere to the highest ethical standards*, we always recommend that you seek the counsel of a trusted tax and estate planning expert.
*The Association of Fundraising Professionals Code of Ethical Principles and Standards and the Partnership for Philanthropic Planning’s (formerly known as the National Committee on Planned Giving) Model Standards of Practice for the Charitable Gift Planner
Types of Gifts
The following gifts to the FUND may be acceptable within the governing criteria stated below:
• Tangible Personal Property
• Real Estate
• Remainder Interests in Property
• Oil, Gas, and Mineral Interests
• Bargain Sales
• Life Insurance
• Charitable Gift Annuities
• Charitable Remainder Trusts
• Charitable Lead Trusts
• Retirement Plan Beneficiary Designations
• Life Insurance Beneficiary Designations
The following criteria govern USO-NC in the acceptance of each gift form:
1. Cash. Cash is acceptable in any form. Checks shall be made payable to the USO-NC. Because we use a secure web portal, and Visa, MasterCard and Discover extend protections to donations made online, we encourage you to consider a donation online by clicking here.
2. Tangible Personal Property. All other gifts of tangible personal property (art, coins, equipment, cars, etc.) shall be examined in light of the following criteria:
• Does the property fulfill the mission of the FUND?
• Is the property marketable?
• Are there any undue restrictions on the use, display, or sale of the property?
• Are there any carrying costs for the property?
The USO-NC’s president is authorized by our Board of Directors to make the final determination on the acceptance of other tangible property gifts. Every effort will be made to sell all gifts of tangible property as soon as possible to ensure that support is delivered in a timely fashion to our military personnel and their families.
3. Securities. The USO-NC can accept both publicly traded securities and closely held securities.
Publicly Traded Securities. Marketable securities may be transferred to an account maintained at one or more brokerage firms or by certificates delivered physically with the transferor’s signature or signed stock power attached. As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the Board of Directors. In some cases marketable securities may be restricted by applicable securities laws; in such instance the final determination on the acceptance of the restricted securities shall be made by the USO-NC’s Board of Directors.
Closely Held Securities. Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in limited partnerships and limited liability companies, or other ownership forms, can be accepted subject to the approval of the USO-NC’s Board of Directors. However, gifts must be reviewed prior to acceptance to determine:
• there are no restrictions on the security that would prevent the USO-NC from ultimately converting those assets
to cash within a reasonable time;
• the security is marketable; and
• the security will not generate any undesirable tax consequences for the USO-NC.
If potential problems arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift. The USO-NC’s Board of Directors and legal counsel shall make the final determination on the acceptance of closely held securities when necessary. Every effort will be made to sell non-marketable securities as quickly as possible.
4. Real Estate. Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. Prior to acceptance of real estate, the USO-NC shall require an initial environmental review of the property to ensure that the property has no environmental damage. Environmental inspection forms are available upon request to our Development Director. In the event that the initial inspection reveals a potential problem, the USO-NC’s president shall retain a qualified inspection firm to conduct an environmental audit. The cost of the environmental audit shall generally be an expense of the donor.
If potential donations of real estate have ongoing use by the USO-NC and it is anticipated that it should be retained, the USO-NC’s Board of Directors will work with the donors to have the gift made directly to the USO-NC. Every effort will be made to sell real estate accepted by the USO-NC as quickly as is reasonable.
When appropriate, a title binder shall be obtained by the USO-NC prior to the acceptance of the real property gift. The cost of this title binder shall generally be an expense of the donor.
Prior to acceptance of the real property, the gift shall by approved by the USO-NC’s Board of Directors and by our legal counsel. Criteria for acceptance of the property shall include:
• Is the property useful for the purposes of the USO-NC?
• Is the property marketable within a reasonable period?
• Are there any restrictions, reservations, easements, or other limitations associated with the property?
• Are there carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated
with the property?
• Does the environmental audit reflect that the property is not subject to unacceptable environmental conditions?
5. Remainder Interests in Property. The USO-NC will accept a remainder interest in a personal residence, farm, or vacation property subject to the provisions listed above. The donor or other occupants may continue to occupy the real property for the duration of the stated life. At the death of the donor of other lifetime occupant, the USO-NC may use the property or reduce it to cash. Where the USO-NC receives a gift of a remainder interest, expenses for maintenance, real estate taxes, and any property indebtedness are to be paid by the donor or primary beneficiary.
6. Oil, Gas, and Mineral Interests. The USO-NC will not accept oil and gas property interests, and would encourage the owners of such to liquidate the interests and give funds directly to the USO-NC.
7. Bargain Sales. The USO-NC may enter into a bargain sale arrangement in instances in which the bargain sale furthers the mission and purposes of the USO-NC. All bargain sales must be reviewed and approved by the USO-NC Board of Directors. Factors used in determining the appropriateness of the transaction include:
• The USO-NC must obtain an independent appraisal substantiating the value of the property.
• If the USO-NC assumes debt with the property, the debt ratio must be less than 50% of the appraised
• The USO-NC must determine that there is a market for sale of the property, allowing sale within 12 months
• The USO-NC must calculate the costs to safeguard, insure, and expense the property (including property tax,
if applicable) during the holding period.
8. Life Insurance. The USO-NC must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. The gift is valued at its interpolated terminal reserve value, or cash surrender value, upon receipt. If the donor contributes future premium payments, the USO-NC will include the entire amount of the additional premium payment as a gift in the year that it is made.
If the donor does not elect to continue to make gifts to cover premium payments on the life
insurance policy, the USO-NC may:
• continue to pay the premiums;
• convert the policy to paid up insurance; or
• surrender the policy for its current cash value.
9. Charitable Gift Annuities. Charitable gift annuities may be arranged through a carefully reviewed and pre-selected third party, hereafter called the Annuity Administrator, with the USO-NC as recipient of the remaining principal after payments have terminated.
10. Charitable Remainder Trusts. The USO-NC may accept designation as remainder beneficiary of a charitable remainder trust with the approval of the USO-NC Board of Directors. The USO-NC Board of Directors will not accept appointment as trustee of a charitable remainder trust.
11. Charitable Lead Trusts. The USO-NC may accept a designation as income beneficiary of a charitable lead trust. The USO-NC Board of Directors will not accept an appointment as trustee of a charitable lead trust.
12. Retirement Plan Beneficiary Designations. Donors and supporters of the USO-NC will be encouraged to name the United Service Organizations of North Carolina (USO-NC) as beneficiary of their retirement plans. Such designations will not be recorded as gifts to the USO-NC until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
13. Bequests. Donors and supporters of the USO-NC will be encouraged to make bequests to the United Service Organizations of North Carolina (USO-NC) under their wills and trusts. Such bequests will not be recorded as gifts to the FUND until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
14. Life Insurance Beneficiary Designations. Donors and supporters of the USO-NC will be encouraged to name the United Service Organizations of North Carolina (USO-NC) as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts to the USO-NC until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.